Snapchat saw an average of 319 million daily active users over the fourth quarter for 2021, which was 13 million higher than its third quarter usage.

Revenue increased to $US 1.3 billion, a 42% increase over the previous quarter, and the first-ever quarter that Snap has recorded with positive net income. This translated to earnings per share of 22 cents, exceeding analyst expectation of 10 cents per share and revenue of $US 1.2 billion.

Snap says it anticipates revenue for first quarter 2022 to be in the range of $US 1.03 and $US 1.08 billion.

Snap shares ended up 59% at the end of trading, despite an earlier drop on the back of Meta’s huge walloping during the week.

Snap also recorded payment of $250 million through its Snapchat Spotlight programs to over 12,000 creators.

Meanwhile, Facebook continues to allege advertising losses arising from Apple's change to its ad tracking transparency whereby iOS users must opt-in to tracking. However, Snapchat states it has recovered from the change and its first-ever net quarterly profit demonstrates this must be so.